Real Estate Advice: How to dodge the 'deal-breakers'

Thursday

Jul 13, 2017 at 10:00 AM

By Linda Goodspeed

Anyone who has ever bought or sold a home knows “it ain’t over ‘til it’s over.” Here are some tips for keeping your deal on track:

One of the top deal-breakers is the home inspection. The home inspection is a chance for buyers to “look under the hood” of a home. If they don’t like what they see, they can void the contract, ask the seller to fix the problem(s) or renegotiate the price. One way sellers can avoid haggling over what a buyer’s home inspector turns up is to get their own inspection of the property before they put it on the market. That way, they can spot potential problems and either fix them or set a price that reflects the home’s condition. They can point out defects and take potential issues off the table.

Another big deal-breaker is financing. In today’s tough financing environment, many buyers are unable to come up with the money they need. Buyers can head off this pitfall by getting preapproved before they start their search and make an offer on a home. But don’t overestimate the power of a preapproval letter. Final approval is decided later. So don’t do anything to upset your preapproval. Don’t make any big purchases. Don’t run up credit cards, open new credit accounts, etc. Condo buyers have extra financial hurdles to overcome. Lenders will want to examine the financial health of the condo association before approving a loan. If a property has too many empty units or rentals, financing may be denied. On the other side, sellers should also monitor their finances closely. Some sellers are surprised at closing to find out they owe money. Make sure to factor in the cost of the real estate agent, lawyer and closing costs, and calculate how much the sale will net.

An appraisal that comes in below the agreed-upon sales price is another common deal-breaker. To head off a potential low appraisal, sellers should be on hand when the appraiser arrives, armed with facts about the home, what distinguishes it and recent sales prices of similar homes in the neighborhood.

Finally, whether you are a buyer or a seller, educate yourself as much as possible about current real estate trends in your community. The more you know, the better prepared you will be to finish the race!

Linda Goodspeed is a long-time real estate writer. Email her at lrgoodspeed@comcast.net.